Full Press Release Details
Healthcare Reports First Quarter GAAP EPS of $0.40 and Adjusted EPS of
Financial Guidance for 2017
FRANKLIN, Tenn.--(BUSINESS WIRE)--April 25, 2017--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
first quarter ended March 31, 2017. Revenue for the quarter was $679.2
million, an increase of 10.1% from $616.8 million for the first quarter
of 2016. Net income attributable to Acadia stockholders increased 36.1%
to $35.0 million for the first quarter of 2017 from $25.7 million for
the first quarter of 2016. Net income attributable to Acadia
stockholders per diluted share increased 29.0% to $0.40 for the first
quarter of 2017 from $0.31 for the first quarter of 2016, on a 4.2%
increase in weighted average diluted shares outstanding. Adjusted income
from continuing operations attributable to Acadia stockholders per
diluted share was $0.46 for the first quarter of 2017 compared with
$0.55 for the first quarter of 2016. The results for the first quarter
of 2017 were impacted by the decline in the exchange rate of the British
Pound Sterling to the U.S. dollar, the divestiture of 22 facilities in
the U.K. during the fourth quarter of 2016 and the loss of one day due
to leap year in 2016. A reconciliation of all non-GAAP financial results
in this release appears beginning on page 8.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia, commented,
"Acadia produced financial results for the first quarter of 2017 that
were largely consistent with our expectations for the quarter and
financial guidance for the year. Our revenue growth primarily resulted
from the acquisition of Priory Group on February 16, 2016, which added
approximately 6,200 beds, net of the divestiture, to our operations in
the United Kingdom. In the trailing 12 months ended March 31, 2017, we
also acquired nearly 240 beds through three transactions and added 719
beds to existing facilities and de novo facilities, 82 of which were
added to existing facilities in the first quarter of 2017.
"The favorable impact of the growth in our beds in operation during the
first quarter was partially offset by a reduction of approximately six
percentage points in our revenue growth rate due to the post-Brexit
decline in the exchange rate of the British Pound Sterling to the U.S.
dollar, in addition to the impact of the first quarter of 2017 having
one less day due to leap year in 2016."
Acadia's same facility revenues increased 4.8% for the first quarter of
2017 compared with the same prior-year quarter, as patient days rose
3.7% and revenue per patient day increased 1.0%. Same facility revenue
increased 5.5% for the U.S. facilities, with an increase of 5.8% in
patient days and a decline of 0.3% in revenue per patient day. Same
facility revenues increased 2.6% for the U.K. facilities, with a 0.1%
increase in patient days and a 2.4% increase in revenue per patient day.
Total same facility EBITDA margin declined to 25.2% for the first
quarter of 2017 from 25.6% for the first quarter of 2016. Acadia's
consolidated adjusted EBITDA was $136.4 million for the first quarter of
2017, up 4.1% from $131.0 million for the first quarter of 2016.
As of January 1, 2017, the Company adopted a new accounting standard,
ASU 2016-09, under which adjustments to the income tax effects of
share-based awards are now recognized in the income statement when the
awards vest, instead of through equity on the balance sheet. This change
resulted in an increase in Acadia's income tax provision for the first
quarter of 2017 of $1.7 million or an increase in the unadjusted tax
rate of 3.6 percentage points. Adjusted income from continuing
operations for the first quarter of 2017 excludes the impact of adopting
ASU 2016-09, and as a result the adjusted tax rate is 24.5%.
Acadia today affirmed its previously established financial guidance for
Revenue for 2017 in a range of $2.85 billion to $2.9 billion;
Adjusted EBITDA for 2017 in a range of $625 million to $640 million;
Adjusted earnings per diluted share for 2017 in a range $2.40 to $2.50.
The Company's 2017 financial guidance assumes an exchange rate of $1.25
per British Pound Sterling and a tax rate of approximately 25%. The
Company's guidance does not include the impact of any future
acquisitions or transaction-related expenses. EBITDA is defined as net
income adjusted for net loss attributable to noncontrolling interests,
income tax provision, net interest expense and depreciation and
amortization. Adjusted EBITDA is defined as EBITDA adjusted for
equity-based compensation expense, gain on foreign currency derivatives
and transaction-related expenses. Adjusted income is defined as net
income adjusted for provision for income taxes, gain on foreign currency
derivatives, transaction-related expenses and income tax provision
reflecting tax effect of adjustments attributable to Acadia.
Acadia will hold a conference call to discuss its first quarter
financial results at 8:00 a.m. Eastern Time on Wednesday, April 26,
2017. A live webcast of the conference call will be available at www.acadiahealthcare.com
in the "Investors" section of the website. The webcast of the conference
call will be available through May 10, 2017.
This news release contains forward-looking statements. Generally words
such as "may," "will," "should," "could," "anticipate," "expect,"
"intend," "estimate," "plan," "continue," and "believe" or the negative
of or other variation on these and other similar expressions identify
forward-looking statements. These forward-looking statements are made
only as of the date of this news release. We do not undertake to update
or revise the forward-looking statements, whether as a result of new
information, future events or otherwise. Forward-looking statements are
based on current expectations and involve risks and uncertainties and
our future results could differ significantly from those expressed or
implied by our forward-looking statements. Factors that may cause actual
results to differ materially include, without limitation, (i) potential
difficulties operating our business in light of political and economic
instability in the U.K. and globally following the referendum in the
U.K. on June 23, 2016, in which voters approved an exit from the
European Union, or Brexit; (ii) the impact of fluctuations in foreign
exchange rates, including the devaluation of the British Pound Sterling
(GBP) relative to the U.S. Dollar (USD) following the Brexit vote; (iii)
Acadia's ability to complete acquisitions and successfully integrate the
operations of acquired facilities, including Priory facilities; (iv)
Acadia's ability to add beds, expand services, enhance marketing
programs and improve efficiencies at its facilities; (v) potential
reductions in payments received by Acadia from government and